The evolution of Bitcoin adoption is being debated every day. Is it a new currency? Is it a store of investment? Or is it a financial instrument used for speculation?
Ultimately, its adoption will depend on public acceptance. That is until it is further regulated and taxed by governments.
If Bitcoin adoption continues to increase, how will individuals gain access to it in a convenient and easy-to-use manner? With a Bitcoin ATM, of course.
Continue reading to learn more about a Bitcoin ATM and how to start a Bitcoin ATM business among this new and emerging financial technology.
What Is a Bitcoin ATM?
A Bitcoin ATM, or BTM, operates much like a modern-day cash machine. The main difference – you deposit cash for Bitcoin. Or, with some BTMs, you can sell or buy bitcoin or other cryptocurrencies for an immediate cash withdrawal.
The real convenience with a BTM lies in your ability to offload different currencies and consolidate them into Bitcoin. For example, maybe you are traveling and need a safe way to move your money from country to country.
If you can access a Bitcoin ATM, you can deposit the cash from your current travel location into the BTM and then take out your destination’s currency once you land safely.
All examples aside, owning a BTM is another matter altogether. So let’s take a closer look at the business of owning one now.
Search for the Right Legal Help
Due to the unregulated nature of Bitcoin, it is advised to seek out legal counsel before making any serious business decisions. Understanding the laws regulating a Bitcoin ATM business will save you from stressful and costly mistakes later.
Even if there are very few laws and regulations, you will want to make sure you cover the basics involved with starting any business.
Find Insurance and Technical Support
Again, the Bitcoin ATM business model is still relatively new. Therefore, the resources you are looking for may not be available for the maintenance and support of your BTM machine.
Ensure that the BTM machine company you use has some type of warranty or insurance, along with technical documentation and customer technical support.
Partner and Link Your BTM to a Bank or Exchange
The actual funding aspect of a Bitcoin ATM network can come from a few places: A bank, an exchange, or a mining pool.
At the end of the day, you are dealing with cash deposits and withdrawals – along with transactions between banks and credit institutions. As a result, you will need to find a source to fund your transactions.
Funding can be provided by a bank, an exchange, or a Bitcoin mining pool.
Choose a Profitable Location for Your Bitcoin ATM
When looking for a location for your new BTM, you want to consider the amount of foot traffic a site receives, along with the available hours for machine access. Don’t forget to check the average rent of the location where you want to place your machine.
The most popular locations for placing BTMs are coffee shops, corporate offices, supermarkets, shopping malls, and restaurants.
These are just some of the terrific location examples for you to consider. Take the time to brainstorm other potentially profitable locations.
Maybe an airport for international travelers? Or possibly a location on the street, like a traditional ATM, available 24/7 for customers.
Start Your Bitcoin ATM Business Today
If you still don’t think you are ready to start a Bitcoin ATM business today, we hope you are inspired to, soon. Any new business requires a good amount of research and help to explore the best and safest ways to start.
As Bitcoin adoption increases, you can continue to look to other ways to improve upon Bitcoin payments and accessibility. If you enjoyed this article, we know you will like other financial technology news from our blog, so check them out today!